[perezfan]

Originally Posted by G1911

This is the boat I am in. Is it realistic to expect me to have kept documentation of what I paid for a card 18 years ago at a show when I was 13? Was it $100, or $125? Maybe it was $200. I don't know, and if I do know (I can't recall what I had for breakfast last Monday but I do recall what a lot of my cards cost exactly for some reason), I sure as hell can't provide any evidence. The burden of proof has largely shifted with this change.

If I can't recall what I paid or can't document it at all, I can risk the IRS coming after me or just pay full income taxes for what the 1099 states even though my cost surely wasn't $0. Which for me is almost 50% (9.3-10.3% state + 35% federal= 44.3-45.3% total) income tax (plus 10% sales tax on whatever I paid originally) on the full sale price if I don't know the exact figure I paid for it.

Even the most honest tax-payer realistically has to make guesstimates sometimes. I highly doubt anyone here has gotten receipts for every single item they've ever purchased. It's simply not practical, or realistic. Try asking a dealer at your local show for an itemized receipt of all 100 cards you just bought from him for your tax records if you sell a dupe in 20 years, and let us know what they say.

I don't think one has to be a scofflaw to question or not enjoy this shifting of the burden of proof and not being a fan of half their money going to the state every year as income tax, sales tax, property tax, and a dozen more.

Excellent “real world” perspective. I would bet most collectors are in the same exact boat!